POWER: EU Mid-Day Power Summary: FR-DE October Spreads Widens

The French-German October power base-load spread is rising to the highest since 16 August, as front-week losses and milder weather are weighing more strongly on the French contract. Gains in EU gas and carbon markets are limiting the downside for CWE contracts. 

• France Base Power OCT 24 down 2.5% at 63.5 EUR/MWh
• Germany Base Power OCT 24 down 0.3% at 79.64 EUR/MWh
• EUA DEC 24 up 1% at 65.59 EUR/MT
• TTF Gas OCT 24 up 0.8% at 35.56 EUR/MWh
• TTF OCT rises today after a decline to new lows of the month at €34.67/MWh yesterday. European fundamentals are coping despite current pipeline supply cuts and US LNG supply risks due to a hurricane in the US Gulf.
• EU ETS Dec 24 is edging higher today with gains in EU gas prices, while latest funds positioning turned more bearish. The latest Polish EUA CAP3 auction cleared lower at €64.75/ton CO2e, the lowest level since early April.
• European coal imports from Kazakhstan via Russia’s ports increased to 0.35mn tons in August, the highest level in 11 months.
• Investment funds positioning in ICE German power futures increased their net long position from the previous week to near the 2024 high on 16 August, according to the latest COT data as of 6 September.
• Germany’s LEAG has extended the planned maintenance at the 891MW Lippendorf Block S lignite-fired plant by two months until 31 Dec.
• Planned works at the 1.33GW Flamanville 2 reactor has been extended by three days until 15 September.
• The UK’s Crown State has set out plans to lease the UK’s seabed to allow an additional 20-30GW of offshore wind, with proposals to de-risk opportunities for developers and accelerate the deployment of new wind farms.
• Swiss hydropower reserves last week fell for the second consecutive week by 0.6 percentage points to 83% of capacity as of 9 September.